128k context tokens vs 2M file tokens

Hi.

It seems context for 4o models is 128k, right?

But doc about file upload says:

All text and document files uploaded to a GPT or to a ChatGPT conversation are capped at 2M tokens per file. This limitation does not apply to spreadsheets.

How is that? The chat session will never access the entire file because of 128k token limit? Or context is about typed text only?

Thanks!